Risk Commentary

Systemic Risk

Risk managers, ideally, contribute to long range planning and analysis. In a recent workshop, participants and I were discussing risk assessment of the firm’s strategic plan. Risk managers must consider wider systemic risk that could undermine the organization. They must also manage emerging risk on a longer time horizon.

On the issue of strategic risk, I first draw the reader’s attention to my 6-part series in which I discussed high quality risk assessment and future scenarios; strategic identity; stakeholders; and environmental scan. The essential point in that series is that risk assessment should be part of a complete research and planning process, incorporating methods to deal with “black swan” risks and high uncertainty.

In this post, I want to elaborate on the idea of risk managers questioning assumptions that typically go unchallenged. Risk managers can help broaden the range of discussion that informs corporate direction.

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Definitions: ERM and Risk Assessment – Part 1/2

Enterprise Risk Management is a relatively young discipline. There is no universal agreement on what it really consists of. In some of the academic literature, the definition is assumed. Authors don’t bother with it, and yet actual practice of what people call ERM is varied.

I want to give a critique of some of the definitions of Enterprise Risk Management having currency in management discourse, and then propose my own definition of ERM. Standards such as ISO or AS/NZ 4360 do not define or even contain the term Enterprise Risk Management. But they do define risk itself consistently as being associated with the organization’s goals and objectives.

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ERM Case Study – Part 3/5

This is the next post in the Enterprise Risk Management implementation case study of Camosun College, B.C., Canada.

IMPLEMENTATION APPROACH
Project Approach – Key Players
As mentioned previously, the idea for enterprise risk management came from the Board of Governors, who were keen to participate in the provincial government’s foray into the new practice. While many public sector executive seemed at least intellectually to accept the idea of applying risk methods to strategy, the Board wanted to see it done and effect some real changes.
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Create Your Own Risk Management Examples

Experimenting with the Risk Management Process

In previous 3 posts, I described the agenda I use for the “Enterprise Risk Management-Developing and Implementing” workshop, to get participants to work through their own risk management challenges. I also reported on requests expressed in online course feedback. Many want case studies.

In the earliest days of implementing ERM in BC Provincial Government, I remember saying to the Deputy Minister of Finance that, notwithstanding our own innovative risk financing programs, we couldn’t find sufficient examples of the new enterprise-wide approach. He responded by saying that we would have to create our own examples.
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Requests for Risk Management Case Studies

Online Risk Management Course – Requests for Case Studies

In the previous post, I mentioned that many online and on site course participants have  requested specific advice on managing risks in one or another domain; for example (to repeat):

Specific insurance coverages
First party claims
Operational risk
Risk management in the energy field
Marketing risks
Property and casualty insurance

I have been able to answer certain requests with online course materials and blog posts.

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Feedback from ERM Sessions – Online

Online Risk Management Course – Assessment

The online risk management courses I offer through Risk and Insurance Management Society includes How to Conduct High Quality Risk Assessment, which, in the first two years of its running, got an approval rating (“would recommend this course to others”) of 88%.  Some of the positive feedback stating “the most beneficial aspects” is as follows:

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Report on ERM Sessions – On Site

Risk Management Workshop On Site

Since January I have conducted on site both a custom-designed session on ERM, as well as the RIMS workshop Enterprise Risk Management – Developing and Implementing. Some participants have followed up by taking the new CRM-E (enterprise) risk manager’s online exam, based on the text. These sessions took place in Winnipeg, Calgary, and Edmonton.

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Risk Assessment as Due Diligence in Finance

Questioning the foundations of the economy
In the previous post, issues were raised about the Canadian financial system: Is Canada relatively immune from a deepening depression in the US and Europe? Are Canadian banks, in particular, on solid ground? The main implication I am trying to point out for risk managers is that, in whatever context you happen to be working, a multi-faceted risk assessment that questions common assumptions is needed.

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